13th Jan 2016 07:48
LONDON (Alliance News) - Housebuilding and construction company Galliford Try PLC on Wednesday said trading was solid across its businesses in the first half of its financial year, with good sales in its Linden Homes unit and improving conditions for its construction arm.
FTSE 250-listed Galliford said its Linden Homes unit made progress on its operating margin in the half to the end of December, as it sold more homes, up to 1,357 units from 1,171 a year earlier, at an average selling price of GBP295,000, compared to GBP259,000 a year previously.
As a result of the buoyant conditions in the UK housing market, Galliford said Linden will bring forward plans to create a new outlet in West Yorkshire.
Galliford Try Partnerships, its affordable homes business, did see a decline in contracting revenue in the first half, blamed on uncertainty following new housing legislation unveiled in the UK government's Summer Budget, though the effect of this has now largely eased off and will likely prove a positive for the Partnerships business, Galliford said.
For the construction business, Galliford's order book increased to GBP3.7 billion at the end of December, up from GBP3.2 billion a year earlier, as market conditions improved. Galliford added it has continued to make progress on concluding troublesome legacy contracts and has seen improved margins on the new work it has won.
"I am delighted to report that all of our businesses continued to trade well in the first half of the year to June 30, 2016. Market conditions have remained positive, with build cost increases stabilised to a manageable level," said Chief Executive Peter Truscott.
"As we look ahead to the second half of the year, we are in a strong position to deliver results in line with our expectations," he added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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